Saudi Aramco said to mull bank mandates for IPO roles

Saudi Arabian Oil Co. (Saudi Aramco) is mulling plans to mandate investment banks for different stages of its planned initial public offering (IPO), Bloomberg reported on Wednesday, citing unnamed sources familiar with the matter.

Talks are ongoing with banks to pick a financial adviser, the people said. Bank roles will be limited to IPO preparation advice for now, however, banks with strong performance in that stage will likely be roped in for other roles, including underwriting.

No decisions have been yet taken, though Aramco is expected to pick banks in the next few days, the sources added.

The state-owned major oil producer had in January asked banks including Goldman Sachs Group Inc. and HSBC Holdings Plc to advise on its upcoming share sale.

Credit Suisse Group AG, Morgan Stanley, Citigroup Inc. and JPMorgan Chase & Co were also invited.

Earlier in March, New York-based investment bank Evercore Partners Inc. and boutique investment bank Moelis were hired by Aramco to play an advisory role in the offering.